Stamp duty concerns: According to a report in Property Wire this week, 31% of potential buyers are ‘very likely’ to pull out of moving if they miss out on the stamp duty holiday. Threatening almost a third of all potential property sales.
The research by The Guild of Property Professionals suggested that because the home moving process can potentially be quite slow and cumbersome, many buyers may miss the stamp duty deadline and lose their incentive to buy, unless the government extends the stamp duty holiday.
At present, buyers have until the 31st March 2021 to take advantage of the scheme and there have been some calls to shift the deadline further into the year – but the UK government has publicly stated that it has no plans to move it.
Speaking about the findings, the chief executive of The Guild of Property Professionals, Iain McKenzie said:
“If the deadline remains as it is, only a quarter of the sales agreed in January will complete in time.
“With 140,000 more people waiting to complete sales than this time last year, there will be a significant number of buyers who will have to find additional money for stamp duty if they have not budgeted for it.
“Our hope, and the hope of 71% of the public, is that the government extends the stamp duty holiday, or at the very least, introduces a phasing out period that will ease the pressure on all parties involved, and will prevent a cliff edge.”
The stamp duty holiday moved the minimum threshold from which tax is charged from £125,000 to £500,000.
Stamp Duty Concerns: Brokers confident and optimistic for 2021
However, even if the Deadline is not moved, it’s not all gloom and doom. According to a report from Masthaven Bank this week, 71% of brokers are confident about the market in 2021 and 87% are optimistic about their own company’s prospects in the new year.
Speaking about the survey of 265 brokers, the director of intermediaries at Masthaven, Rob Barnard said:
“Despite the challenges of 2020, confidence among brokers has remained remarkably resilient.
“This is testament to the strong collaborative effort between brokers and lenders in an unprecedented time. The industry has demonstrated this year that it can continue to operate in extraordinary circumstances and provide the support customers need.
“As the pandemic continues to wreak havoc on the finances of people across the UK, brokers will be key in helping many people who no longer fit the model of a ‘vanilla’ borrower unlock affordable finance.
“Looking ahead, tough economic conditions and a potential no-deal Brexit may mean more challenges ahead. However, knowing that brokers are optimistic about 2021 should give lenders and customers greater confidence in the market and provide an opportunity for the market to expand and innovate further.”
Are you planning a big move in 2021? Give us a call on 01308 423939 for a free no-obligation quote, or use one of our online tools for a quick quote – or a more in-depth guide. We can help with every aspect of your home move, from packing, to hauling, shipping or storing. Get in touch to find out more.